We hear news about financial scandals taking place in the corporate world. It makes us wonder how these perpetrators thought they could get away with such malfeasance acts. This infographic lists 10 worst accounting scandals that took place.
1. Waste Management Scandal
A Houston-based company reportedly made $1.7 billion in fake earnings.
2. Enron Scandal
This corporation did not enter huge debts in balance sheets, which lead to $74 billion loss by shareholders and loss of jobs.
3. Worldcom Scandal
This company inflated assets by $11 billion, which resulted in loss of jobs of thousands of employees and heavy losses for investors.
4. Tyco Scandal
CEO and CFO made away with $150 million and inflated company’s income by $500 million.
5. HealthSouth Scandal
Inflated earnings to $1.4 billion to meet the expectations of stakeholders.
6. Freddie Mac Scandal
This federally backed mortgage-financing company intentionally misstated $5 billion in earnings.
7. American Insurance Group Scandal
$3.9 billion accounting fraud was alleged including bid-rigging and manipulation of stock-price.
8. Lehman Brothers Scandal
Over $50 billion were hidden in loans disguised under sales.
9. Bernie Madoff Scandal
Tricked investors for $64.8 billion by paying them returns of their own money instead of profits.
10. Satyam Scandal
Falsified revenues and cash balances of the company by $1.5 billion.